
Australian innovator Altech Chemicals Ltd. released promising results from its Preliminary Feasibility Study (PFS) of a 10 thousand metric tons per annum silicon/graphite alumina coating plant in Saxony, Germany this week, predicting a rate of return of 40 percent for the project.
Per the firm, the plant, which would produce the proprietary high-capacity silicon/graphite battery anode materials Silumina Anodes, would consist of an up-front investment of US$95 million. The projected net present value of the plant would be US$507 million, generating US$63 million per year when underway.
Altech’s PFS forecasts an internal rate of return of 40 percent on the project, making back its entire capital investment in just over three years. Upon reaching nameplate capacity, the PFS found an annual revenue at the site of US$185 million.
Managing Director Iggy Tan said in a statement to the Australian Stock Exchange that the PFS revealed a highly lucrative opportunity for the firm.
“Whilst Altech’s top priority continues to be financing its Johor HPA project, the Silumina Anodes project represents an exciting downstream opportunity to utilise its HPA coating technology in silicon/graphite battery materials. We are pleased and excited about the results of the 10,000tpa Silumina Anodes PFS. Due to the attractive economics of the study, a decision has been made by the AIG board to immediately progress to a definitive feasibility study (DFS) for the project. AIG has already purchased land in Germany suitable for the project, and the plan is for the AIG team in Saxony to immediately commence DFS work. We believe that the production of Silumina Anodes materials could be a game changing technology for the lithium-ion battery industry.”
Altech has already identified graphite and silicone feedstock sources for the plant in SGL Carbon GmbH (SGL) and Ferroglobe Innovation S.L. (Ferroglobe). With environmental accreditation from Norwegian Centre of International Climate and Environmental Research (CICERO) in hand, Altech has begun construction of a pilot project adjacent to the site of the proposed alumina coating plant that will supply samples to potential clients for testing.
Altech Chemicals is based in Subiaco, Western Australia and is attempting to implement a marketable process for delivering 99.99% (4N) HPA using conventional equipment at a lower production cost than methods currently available. It plans to construct a 4,500 metric ton per annum HPA plant at Tanjung Langsat Industrial Complex, Johor, Malaysia that will use kaolin clay from a company-owned mine in Meckering, Western Australia. The firm is fast-tracking HPA production due to an agreement with Mitsubishi for 100% of its proposed HPA production for ten years.